NEW HAMPSHIRE — A resident and real estate developer from Bow, New Hampshire has been indicted on federal bank fraud charges after he secured a $3.8 million dollar loan through a scheme targeting a prominent commercial building in Manchester.
The U.S. Attorney’s Office for the District of New Hampshire announced Thursday that Charles Sargent, 37, faces one count of bank fraud in connection with alleged efforts to finance an acquisition of the Chase Block Building on 1037-1045 Elm Street. The indictment outlines the methods in which Sargent directed flows while manipulating purchases prices to obtain larger financing.
Federal prosecutors allege that while operating as a real estate developer, Sargent arranged for the true owner of the Chase Block Building to hand over the property for $2.7 million to an individual acting on his behalf. After the transaction, Sargent took possession of the building, forming the foundation of the scheme. This enabled him to control the asset as he prepared documentation for financing that did not reflect the actual mechanics of the deal.
In order to secure the multi-million dollar loan, Sargent reportedly told the lender that he purchased the Chase Block Building for $4.7 million dollars. In the indictment, it states that he supported the claim with false bank statements, fake leases, and phony checks. These items created the appearance of a more expensive transaction, and justified the loan amount at the time.
U.S. Attorney Erin Creegan made the announcement in Concord as the single count of bank fraud draws directly from the verified sale price and inflated figure amount presented to obtain the loan; the indictment is set to return to a federal grand jury.
The allegations, if proven true, outline the risk to vulnerability in commercial real estate that strain lending institutions and disrupt potential for legitimate developers and borrowers. The case remains in the U.S. District Court and there are no additional details released as to the specific financial institution involved or the status of the loan currently.
The latest indictment in New Hampshire serves as a strong reminder of federal authority efforts in the region to protect the integrity of our nation’s financial systems while serving communities across the northeast.
